SoftBank-backed DriveWealth has raised $450 million in fresh capital as part of a late-stage financing round co-led by private equity and venture capital firm Insight Partners and Accel, valuing the fintech firm at $2.85 billion.
Founded in 2012, DriveWealth offers technology that allows companies to offer fractional trading services. So-called fractional shares are offered by many brokerages, letting investors buy a slice of a share instead of the whole thing.
The trading frenzy centered on GameStop Corp and other “meme” stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc , whose no-fee brokerage app has helped drive a trading boom.
Investors also see opportunity in the infrastructure behind the trading apps, powered by companies such as DriveWealth.
“We are in the early innings of a worldwide retail investing revolution,” said Bob Cortright, founder and Chief Executive Officer of DriveWealth.
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